SBA to pause all new 7(a) loan processing

October 07, 2025

by a searcher in Wilmette, IL, USA

Not sure if this has been discussed here already, but worth keeping in mind. I received this a few minutes ago from rejigg dot com in a newsletter. "October Timeout As many Rejigg buyers know, the government shutdown that began on October 1st has caused the SBA to pause all new 7(a) loan processing until funding is restored. If you’re in the middle of a deal or planning to apply soon, expect some delays. The good news: lenders can still underwrite deals, and funding won’t be interrupted for any 7(a) loans that have already been approved. Stay tuned for more info."

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Reply by a lender
from Cornell University in Los Angeles, CA, USA

Thank you ^redacted‌ for tagging me here. Hi Cristobal - nice to meet you. That’s correct - but the impact is mostly limited to deals after the pre-term sheet and pre-commitment stages. If a lender already pulled the PLP/loan number before the shutdown, those loans can still fund. For all other deals, lenders can continue underwriting and issuing term sheets as usual, but they won’t be able to fund until the SBA reopens and resumes issuing PLP numbers. This doesn’t affect pre-term sheet or pre-commitment deals. Lenders are still moving forward with full underwriting and commitment letters; they just can’t close and fund yet. Most people expect the shutdown to last around 2–3 weeks, so it’s more of a timing pause than a disruption. This is why it's so important to work with a broker that knows how to navigate these situations. We have a lot experience financing various companies via the SBA. If you ever need help talking through a deal, I am happy to help. We work with all the major SBA lenders. The bank pays us after your loan closes, so this is a 100% free service for you. You can email me directly at redacted or schedule a meeting with me: https://cal.com/francodeguzman/30min. Look forward to chatting!

Reply by a lender
from Berkeley College in Chicago, IL, USA

Great points and agree. We are still open for business and underwriting/approving new opportunities and providing commitment letters in the interim, so we are ready, once open.

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